Central Banks Hold the Line as Iran War and Tariff Chaos Cloud the Outlook

Central banks across the globe are hitting pause on rate moves, caught between sticky inflation and rising geopolitical risks. The US Fed held rates at 3.50%-3.75% last week with a 9-3 vote, the Bank of Japan recently lifted borrowing costs to a 31-year high of 1%, and the Bank of England kept its rate at 3.75% amid a 6-3 split. The message is clear: policymakers are waiting for the smoke to clear.

Headwinds

• Oil price volatility: The Iran war...